Important Steps You Should Follow When Buying a Car with Bad Credit Auto Loans

1. August 9, 2017 Important Steps You Should Follow When Buying a Car with Bad Credit Auto Loans So you happen to have a bad credit score. Luckily, that doesn't mean that you won't be able to buy a car for yourself. That's because it's always possible to avail of a bad credit auto loan. What you need to realize is that your credit score never tells the whole story. You could have landed a poor score for a number of reasons. For instance, your low score may be due to a Page | 1

2. history of late payments. In fact, payment history accounts for 35 percent of your total credit score. On the other hand though, you may also currently have a score below 629 just because you don't have enough years of good credit history yet. Typically, some lenders may not want to grant you a car loan if you have a bad credit score simply because you may appear to be too much of a risk. Fortunately, bad credit auto loans are designed to provide you with a car financing package regardless of your credit score. That said, there are some important steps you can take to make sure that you go through the bad credit auto loan process as smoothly and as prepared as possible. Compute Your Bottom Line First things first, you need to sit down and crunch the numbers. Think about all of your current expenses each month and add them all up. When you have deducted all these, you can determine how much you can afford to actually spend on a car. This way, you would have more room in the budget for other expenses that come with car ownership. These include maintenance, repairs and of course, fuel. Plugging these expenses in your budget too can determine how much is left for your monthly car payment. In case you need further guidance, a study from CNW research reveals that it's most ideal if the car payment would only take up around 15 percent of your pretax monthly pay. Get Pre-Approved for a Bad Credit Auto Loan Once you have determined how much you can spend on a car, go ahead and approach a car dealership to apply for a bad credit auto loan. Just make sure that you bring along necessary documents they may require, such as your credit report and your ID. This way, they can also process your application more efficiently. Choose the Right Vehicle for You Once you've got the approval, it's time to choose the perfect car for you. Ask the dealership to help determine which car models are within your budget range. Go through this narrowed down list and figure out if you want something with more space or perhaps, greater fuel Page | 2

3. efficiency. Ideally, a fuel efficient car would help you cut down on monthly car costs since you won't have to refuel often just to get from point A to point B. Follow these steps and you should be able to get your very own car on a bad credit car loan in no time. As you can see, the key here is not to go over your expected costs so as to make sure you can always afford to pay for your new car. Being able to pay on time will also help improve your credit history and score. About McLoughlin Chevrolet: At McLoughlin Chevrolet, we make it possible for you to buy your very own car even with a low credit score. In fact, our bad credit auto loans program is designed to provide car financing regardless of your credit history. We also offer a wide variety of vehicles to choose from. Sources: How to Get a Car Loan With Bad Credit, cars.usnews.com Bad credit car loans – 9 steps to getting a car loan with bad credit, bankrate.com How to buy a car with bad credit, consumeraffairs.com #FirstTimeBuyers: How Much Should I Spend on My Car?, cars.com Page | 3